Start your 4D financial life
We live in a world with 4 dimensions: length, width, depth, and time. Our life is more fascinating, exciting, and much less primitive than that of a point.
It's the same with your financial life. To reach financial freedom you need to manage all 4 dimensions of your finances.
- Goals & Debt
- Income growth
Budgeting is the foundation of your financial life. It has 4 main rules:
- Analyze your spending: how much, where, and why you spend
- Save over 20% of your income
- Build an emergency fund
- Increase your spending by less than 50% of your income growth
This is the most basic dimension of your financial life. And your success in it will depend 80% on your self-discipline and only 20% on the method of budgeting.
1D + Goals & Debt
It is a flat world where many people spend their financial lives.
There are 4 important rules to follow here:
- Avoid high-interest debt
- Set goals and make plans correctly
- Improve and control your credit score
- Reduce your debt servicing costs
When you learn how to manage your financial life in 2D you will be able to handle most of your financial issues.
2D + Income growth
To make your income grow, your financial life needs another dimension. Discover it following these 4 rules:
- Invest in yourself
- Plan your career
- Network and create your personal brand
- Create multiple streams of income
Improve yourself! Increase your value! Then the 2D financial world will no longer be a problem for you as your assets will increase in volume and your financial life will improve in quality!
3D + Investment
Once you have saved some money, you will ask yourself, "Where should I put it and for how long?" That's another dimension of your financial life: investing. And it has its own rules:
- Make your money work for you
- Invest over 10% of your income
- Don't put all your eggs in one basket
- Understand and control the risks
We can't see 4D objects. All we are able to see is their 3D slices. Similarly, we can’t predict whether our investments will be successful. We can only know the current value of assets, control portfolio risks, and assess our chances.